CPS Energy Rebates: San Antonio's Per-Ton System, Explained
CPS Energy prices its HVAC rebates differently than any other Texas utility: per cooling ton, by efficiency tier — and it pays MORE for replacing a system that still works than for replacing one that died. That "Early Replacement" premium turns conventional wisdom on its head: in San Antonio, waiting for the unit to fail is literally leaving money on the table.
The 2026 rebate tiers
Two payout schedules, five tiers each, from CPS's published specifications:
Early Replacement (old system still operational):
Replace on Burnout (old system dead): $90 / $120 / $150 / $225 / $275 per ton across the same tiers.
Multiply by tonnage: a 4-ton, 20+ SEER2 early replacement earns $1,240; the same system installed after the old one dies earns $1,100. Central A/C, central heat pumps, and ductless mini-splits all qualify on the same schedule.
Beyond HVAC: attic insulation at $0.35/sq ft (contractor-installed), a no-cost High-Performance A/C Tune-Up (worth up to 30% cooling savings, per CPS), $150 + $30/summer for enrolling a smart thermostat, window A/C units $50–$75, variable-speed pool pumps up to $450, cool roofs at $0.20/sq ft, and Casa Verde — free weatherization for qualifying homeowners and renters.
Who qualifies — and the paperwork that decides it
CPS Energy residential customers (San Antonio's municipal utility). The requirements CPS enforces strictly:
- AHRI certificate — the new system's efficiency is verified against its AHRI certificate, and the condenser, coil and furnace model numbers must match. A spec-sheet promise isn't enough; the certificate decides the tier.
- Texas-licensed HVAC contractor — all equipment must be installed by one; inside San Antonio city limits, a permit number is also required.
- One-for-one replacement on existing homes — retrofit projects only.
- Early Replacement proof — the old system must be operational, under 25 years old (central) or under 20 (heat pump), with photos, model and serial numbers submitted. Miss the documentation and CPS processes it at the lower burnout rate.
The early-replacement edge
Most homeowners run a system until it quits, then replace it in a July emergency — at burnout rates, with no time to compare quotes. CPS's schedule pays a premium for doing it the other way: replace a working 7+ year old system on your own timeline, document it properly, and collect the higher tier while cutting the monthly bill sooner. This is exactly the project Upgrade Rebates is built for: check your ZIP, and we confirm the tier your equipment hits, line up a licensed contractor, and make sure the AHRI certificate, photos and permit paperwork land the way CPS requires.
Stack it: tiers + insulation + the tune-up
The same project visit can claim more than one program: the per-ton HVAC rebate, $0.35/sq ft on attic insulation, and thermostat enrollment ($150 up front, $30 each summer). For homes not ready to replace, the free tune-up buys efficiency now — and CPS's own assessment tells you when the math flips toward replacement. When monthly savings meet or beat a financing payment, the upgrade carries itself; the rebate check is on top.
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CPS Energy Rebates questions
How much is the rebate on a typical system?
Per cooling ton, by SEER2 tier: $115–$310/ton for early replacements, $90–$275/ton on burnout. A 3-ton mid-tier system lands in the $390–$525 range; big high-tier systems clear $1,200.
Why does a working old system earn more than a dead one?
CPS pays a premium for early replacement — grid savings arrive sooner. The old unit must be operational and under the age caps, with photo and serial-number proof.
Do I need a specific contractor?
Any Texas-licensed HVAC contractor — but inside San Antonio city limits you'll also need a permit number on the application, and the invoice must list model and serial numbers for every new unit.
Is there anything free?
Yes — the High-Performance A/C Tune-Up costs nothing, and Casa Verde provides free weatherization to qualifying homeowners and renters.